state exam 4 missed Flashcards
(12 cards)
The designated officer of a licensed real estate corporation owns 15% of the corporation. How much E&O insurance is required by TREC?
(a) $1 million
(b) $0
(c) $5 million
(d) $10 million
(b) $0
TREC requires $0 of E&O insurance if the designated officer owns 10% or more of the corporation
How long does a broker have to deposit earnest money in an escrow account?
(a) Within 3 days of the effective date of the contract
(b) Until the close of the second business day after an offer has been delivered to the offeree
(c) Until the close of business of the second business day after the broker receives the funds
(d) There is no rule about this
(c) Until the close of business of the second business day after the broker receives the funds
The broker has until the close of business of the second business day after the broker receives the funds to deposit the earnest money in the escrow account
How can the TREC IABS form be delivered in an email?
(a) The IABS or a link to a completed IABS must be in the body of the email.
(b) The IABS must be in the header of the email
(c) The IABS must be in a footnote in the email
(d) The IABS must be in a readily noticeable location in an email
(a) The IABS or a link to a completed IABS must be in the body of the email.
The IABS can be in the body of the email.
Also, a link to a completed IABs can be in the body of the email
It cannot be in the header, as a footnote, or in the signature block.
It must be readily noticeable location on the website
A license holder is helping a buyer fill in the blanks on a contract form to make an offer on a property. What are the duties of the agent in this situation?
(a) The agent will simply provide advice and opinions to help the buyer fill in the blanks
(b) The agent will provide advice on filling in the blanks, but no opinions
(c) The agent will help the client fill in the blanks and will explain all preprinted paragraphs
(d) There are no specific guidelines for the agent in this situation
(c) The agent will help the client fill in the blanks and will explain all preprinted paragraphs
The license holder will help the client fill in the blanks and will explain any paragraphs where there are no blanks
In the event of a conflict between the statutory duties of Intermediary and the common law duties of dual agency of a broker, which takes precedence?
(a) Common Law Dual Agency
(b) Statutory Intermediary
(c) Whichever the broker entered into first
(d) Whichever the broker and the parties agree to
(b) Statutory Intermediary
Statutory Intermediary takes precedence over Common Law Dual Agency
An unlicensed assistant has accompanied an agent who is hosting an open house. The agent receives a call about an emergency with one of her children and must leave the open house. The unlicensed assistant agrees to stay at the property for the last 30 minutes of the open house and then lock up for the agent. As a result of these actions what is true?
(a) The agent can be charged with a Class A misdemeanor
(b) The broker can be charged with a Class A misdemeanor
(c) Only the agent can be fined by TREC
(d) The unlicensed assistant, the agent and the sponsoring broker can all be fined by TREC for the unauthorized activity of the assistant.
(d) The unlicensed assistant, the agent and the sponsoring broker can all be fined by TREC for the unauthorized activity of the assistant.
An unlicensed assistant is prohibited from hosting an open house. The unlicensed assistant, the agent and the broker can all be fined
TREC rules require a license holder to disclose his dual role if he is representing himself in a transaction. TREC also requires a license holder to disclose if his client is a business entity in which the broker or salesperson owns:
(a) 5% or more
(b) 10% or more
(c) more than 10%
(d) more than 15%
(c) more than 10%
A property owner has discovered mold on his property. What is true in this situation?
(a) he must hire both a mold assessor and a mold remediator to solve the problem
(b) he can remediate the mold himself
(c) if he hires a mold remediator, they must provide him with a certificate of mold remediation within 5 business days of performing the mold remediation
(d) whether he hires a remediator or does the work himself, the mold must be remediated
(b) he can remediate the mold himself
Based on the TREC Addendum for Reservation of Oil, Gas, and Other Minerals which of the following is FALSE?
(a) The seller will decide how much of the mineral estate is available to be purchased
(b) An attorney who specializes in oil and gas can determine title to the mineral estate with certainty
(c) The seller can reserve all or a part of the mineral estate
(d) This is a mandatory TREC form for use when the mineral estate is owned by the seller
(d) This is a mandatory TREC form for use when the mineral estate is owned by the seller
The form is not required unless the seller is reserving all or portion of the mineral estate
It is not required if the mineral estate is passing to the buyer
Which of the following could be included in Paragraph 11 of the 1-4 Family Resale Contract?
(a) Factual statements or business details
(b) The buyer will be leasing the property and moving in for 45 days before the closing date
(c) The seller is financing the sale for the buyer
(d) The seller is reserving 50% of the mineral estate
(a) Factual statements or business details
Factual statements or business details for which there is no TREC addendum can be added in paragraph 11
The rest have TREC forms
How many days does the seller have to deliver the survey to the buyer and the title company?
(a) 5 days
(b) 10 days
(c) A negotiated number of days
(d) 20 days
(c) A negotiated number of days
There is a blank in the contract for this, therefore the number of days is negotiated
Who must sign the MUD disclosure?
(a) This form is provided by the seller, but no signatures are required
(b) The seller must deliver, and the buyer must sign the disclosure
(c) Both the buyer and the seller must sign the disclosure
(d) Both parties and all agents involved in the transaction must sign the disclosure
(b) The seller must deliver, and the buyer must sign the disclosure
